Page 80 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.77, # 2, 2020, pp. 78-85

underestimation based on their experience, the leader is often able to accurately
predict aggregate demand [Imran, Muhammad (2015)].

There is also a group method for making management decisions. In the case of using
this, it is possible to generate fresh ideas and new approaches thanks to creativity
and discussion of ideas. Thus, the group technique method is built on the principle
of limiting interpersonal communication. So, initially, the entire group, which was
formed to make a certain managerial decision, provides some written sketches that
provide ways of solving the issue or the way of making a managerial decision. In the
future, each group directly voices the essence of their sketch. The information is
then subject to review and analysis by the group. At this stage, the study is carried
out directly, the materials do not lend themselves to criticism or any discussion. At
the next stage, each of the group members, in writing or electronically, sets out their
assessment of the projects submitted. The sketch that received the most positive
feedback should be made as the main management decision. [Jery, H (2013)].

The payment matrix is used when it is necessary to make a choice in favor of an
option in the presence of several solutions. The use of this method will be very
relevant if the manager has previously established a strategy that will best contribute
to the achievement of goals [Jery, H (2013), Joanna L.Y. HO, Anne WU, Ling-Chu
lee.,(2005)].

So, the payment matrix method can be applied in such cases:
- there are not a significant number of possible solutions;
- the result of a managerial decision will completely depend on which method of
action is chosen.

The presence of risks has a direct impact on decision making. Having determined for
each possible solution the value that is expected as a result, it is possible to make a
management decision as to which option, under certain conditions, is the most
attractive.

Another method of making managerial decisions is the “decision tree” method - a
schematic representation of the best course of action out of several possible ones.
Another method of making managerial decisions is the “decision tree” method - a
schematic representation of the best course of action out of several possible ones
[Kemoh, Linda.,(2016)].

The Delphi method is used when it is not possible to gather a group of specialists in
one place. In accordance with this methodology, meetings of participants and
exchange of views between them are deliberately excluded. The development of the
problem by this method is carried out in the following sequence: 1) the group
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